Yen Extends Losses Amid US-Iran Uncertainty and Rising Oil Prices
The Japanese yen declined in Asian trading on Friday against a basket of major and secondary currencies, extending its losses against the US dollar for a fourth consecutive session.
This decline comes amid growing uncertainty surrounding negotiations between the United States and Iran over reopening the Strait of Hormuz. Oil prices rose by around 0.5% on Friday, supported by bargain buying and renewed concerns over the security of global energy supplies from the Middle East.
Market pricing for a 25-basis-point interest rate hike by the Bank of Japan at its September meeting increased from 70% to 80%, following the renewed rise in global oil prices. This is reviving concerns about inflationary pressures facing Bank of Japan policymakers, strengthening expectations for an interest rate hike.